Cbo Finds Effort To Delay Flood Insurance Reforms Would Add $2.1 Billion To Nfip’s Deficit

 

SmarterSafer.org: CBO Estimate Proves Delay Measures are Unsustainable & Underscores Need To Instead Focus On Modifying The Bill In A Way That Keeps Reforms Alive

WASHINGTON – SmarterSafer.org – a coalition of environmental groups, taxpayer advocates, insurers, and housing and mitigation organizations – today urged Senators to reject S. 1846, the Flood Insurance Affordability Act of 2013, in light of the Congressional Budget Office’s estimate that the bill would add another $2.1 billion to the National Flood Insurance Program’s already sizeable $24 billion deficit.

SmarterSafer.org said: “The Congressional Budget Office has put a number on what we’ve known for months: delaying badly needed flood insurance reforms will exacerbate the shaky finances of the National Flood Insurance Program and push it even closer to the brink of insolvency. The CBO score is just another reason we need to abandon this idea of delaying the reforms and instead focus on modifying them to ensure that we move towards truly sustainable ways to bolster the flood program.”

SmarterSafer.org proposed instead a variety of changes to make reforms more targeted and equitable. These measures include:

  • Slowing down rate increases for properties impacted by new maps and home sales, and slowing down rate increases even further for low-income property owners.
  • Ensuring that FEMA gives credit for the level of protection provided by all flood control systems.
  • Directing the Government Accountability Office to conduct a study on how to address affordability more broadly, including how to prioritize mitigation.
  • Focusing on mitigation measures at both the individual and community-wide level.

For more information on SmarterSafer.org’s recommendations, please go to SmarterSafer.org